Deduction under section 80DD, 80DDB and 80U

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Section 80DD: Deduction in respect of maintenance including medical treatment of a Dependent who is person with disability.

a.      Eligible Assessee: Resident Individual & HUF

b.      Maximum amount of deduction: (Flat deduction irrespective of expenditure)

1.      Rs. 75,000 in case of Normal disability*.

2.      Rs. 1,25,000 in case of Severe disability**.

c.       Conditions:

1.      Deduction is allowed when assessee should incur expenses on medical treatment or deposit any amount for maintenance of a dependent of taxpayer and not the taxpayer himself.

2.      This deduction is not allowed if dependent relative take deduction u/s 80U.

3.      Relative for Individual: Dependent (spouse, brother, sister, children, mother, father)

4.      Relative for HUF: Any Dependent member of HUF

 

Section 80DDB: Deduction in respect of medical treatment of specified disease

a.      Eligible Assessee: Resident Individual & HUF

b.      Maximum amount of deduction: Lower of following

1.      Actual expenses on treatment; or

2.      Rs. 40,000 in case of normal patient

Rs. 1,00,000 in case of senior citizen patient

c.       Conditions:

1.      Assessee should incur expenditure on the treatment of specified diseases

In case of Individual: Self, Dependent (Spouse, brother, sister, children, mother, father)

In case of HUF: Any Dependent member of HUF

2.      Assessee should obtain the prescription for such medical treatment from a neurologist, oncologist, urologist, hematologist, immunologist or such other specialist as may be prescribed otherwise no deduction under this can claim.

3.      Deduction under this section shall be reduced by the amount received from an insurer if any insurance has been taken or reimbursed by an employer.

4.      Certificate in form 10-I has to be taken as per rule 11DD. This form requires broad details of patient.

 

Section 80U: Deduction in case of person with disability

a.      Eligible Assessee: Resident Individual

b.      Maximum Amount of Deduction

Rs. 75,000 in case of Normal disability*

Rs. 1,25,000 in case of Severe disability**

c.       Conditions:

1.      Every individual for claiming a deduction under this section shall furnish a copy of the certificate issued by the medical authority in form 10-IA in the prescribed manner.

*Normal disability means disability is more than 40% and less than 80%

**Severe disability means disability is more than 80%.


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